Pinterest shares rocket 19% on strong revenue and user growth

Pinterest shares rallied 19.1% after the company beat Wall Street's fourth-quarter revenue estimates and signaled strong user growth.
Global monthly active user figures surpassed estimates, showing 11% growth from a year ago.
The results come amid a flurry of strong earnings reports from social media companies, including Snap and Meta Platforms.

Pinterest shares surged 19.1% after the company beat Wall Street's fourth-quarter sales estimates and showed robust user growth from a year ago.

The image-sharing company reported revenues of $1.15 billion, ahead of a $1.14 billion estimate from analysts surveyed by LSEG. The figure represented 18% year-over-year growth.

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Along with the revenue beat, the company offered an upbeat sales outlook. Pinterest said it expects revenues of between $837 million and $852 million during the first quarter, versus LSEG's estimate of $833 million.

"Our strategy is paying off," Pinterest CEO Bill Ready said in a statement. "People are coming to Pinterest more often, the platform has never been more actionable and our lower funnel focus is driving results for users and advertisers."

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Global monthly active user figures also surpassed estimates, showing 11% growth from a year ago. Pinterest reported 553 million users during the period, versus the 547.4 million expected by Wall Street. Revenue per user also topped estimates.

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The results come amid a flurry of strong earnings reports from social media companies in recent weeks. Snap shares surged after the bell Tuesday on better-than-expected results, while Meta Platforms recently topped results and reaffirmed plans for heavy artificial intelligence spending.

Following Pinterest's report, Bernstein analyst Mark Shmulik upgraded shares to outperform from a market perform rating, saying that the company delivered on its "show me story."

"It's possible that this quarter was a one-off, though we see enough evidence in execution to believe the pace of progress is sustainable," he wrote.